VKC PVT LTD [Year]

VKC FOOTPRINTS PVT LTD

BANGALORE
Project submitted in the partial fulfilment of the requirement for

the award of the degree in

MASTER OF BUSINESS ADMINISTRATIONOF

BANGALORE UNIVERSITY

Submitted by VISHNU R AND SHANU SATHEESAN Under the guidance of

Prof. SWETHA ACHARAYA

EAST WEST COLLEGE OF MANAGEMENT (2018-2019)

1
 VKC PVT LTD [Year]

DECLARATION

We, VISHNU R and SHANU SATHEESAN of 2st sem MBA ‘C’sec hereby
declared that the project report entitled about the “VKC FOOTPRINTS PVT
LTD” prepared by us under the guidance of Prof. SWETHA ACHARYA,
faculty of MBA Department, East West College of Management . We also
declare that this project work is toward the partial fulfilment by the Department
of MBA. We have undergone a project for the period of 15 days. We further
declare that this project is based on the original study undertaken by ourselfs.

We for the project report we visited VKC PVT LTD in 4th phase, 14th cross
road, peenya bangaluru, karanataka pin 560058 for the internship for 2weeks,
and we collected maximum information regarding there functions with the help
of HR Manager MR. VYSHAK KRISHNA.

Place: Bangalore

2
 VKC PVT LTD [Year]

ACKNOWLEDGEMENT

We would like to thank our lecturers who have helped and supported us while
doing our Project report and work.

There is not enough word to offer vote of thanks to our Prof Sandya Ma’am,
Head of the Department of MBA, East West college of Management Bangalore
for his help in initiating the project report in advance for the regular motivation,
our guides Prof. Swethaacharya mam faculty of MBA Department, East West
College of Management Bangalore, for their admirable help, suggestions and
opinions on the contribution during and after the project report. We would also
like to thank all the faculties of MBA Department for all the support and
guidance.

Place: Bangalore

Date:

3
 VKC PVT LTD [Year]

TABLE OF CONTENTS

CHAPTER CHAPTERS PAGE

NO. NO.
EXECUTIVE SUMMARY
1 INTRODUCTION 2-4
1.Industry Profile 2
1.1 Macro Scenario 2
1.2 Micro Scenario 4
2 Company profile 6 - 24
2.1 Name of the company and its History 6
2.2 Vision and Mission statements 8
2.3 Product Profile 10
2.4 Competitors 11
2.5 Market share 15
2.6 Milestones achieved / Awards received 16
2.7 Corporate Social Responsibility 20
2.8 SWOT Assessment 24
3 Product / Service profile 27 - 37
3.1 Different products, images and product technical 27
specification
3.2 Work Flow Model 37
4 Organization Structure as whole 39
5 Structure and functions of different functional departments 40 - 49
5.1 Mainly marketing 40
5.2 Human resources 43

4
 VKC PVT LTD [Year]

5.3 Production 45
5.4 Research and development 47
5.5 Quality development 49
Conclusion 52

5
 VKC PVT LTD [Year]

EXECUTIVE SUMMARY

The project report titled “financial statement Analysis” was carried out at VKC
Rubber industry Pvt Ltd. This study was conducted to evaluate the financial
performance of VKC Rubber industry Pvt Ltd in order to give a better scope to
the investors, shareholders, creditors and the management themselves about the
rating of VKC Rubber industry Pvt Ltd and its performance in the market and
thus suggest improvements.

Finance is the life blood of any organization. These statements serve as an

important tools for evaluating and comparing the present earning capacity of the
unit and also for forecasting its future performance and prospects. These
statements also provide the basic information for the purpose of analyzing,
planning and taking vital and strategic financial decisions by the executives of
the company.

The project work involved two parts, that is Part A in plant training which
involves in detail study of the organization, Part B the final project involving
study of analysis of financial statement of VKC Rubber industry Pvt Ltd during
the past three years from 2007-2010 on the basis of in order to know the
company performance, its financial and cash position.

The data used in this analysis has been obtained from the annual reports i.e.,
Balance Sheets and Primary data was collected through Direct interview and
personal observations. From the analysis it was found that the liquidity position,
long term solvency and cash position of the firm is satisfactory.

To improve the financial position, a few measures were suggested which

includes decreasing the liabilities and increasing the income generating assets.
The firm should employ considerable portion of debt in its capital structure. The
company has to concentrate much on its credit policy for faster collections of
accounts receivables. The company has to concentrate much on efficient cash
management in financing and investing activities.

6
 VKC PVT LTD [Year]

With the help of the tools of financial analysis, it can be concluded that VKC
Rubber industry Pvt Ltd is in a good position from the point of view of
performance, profitability and liquidity.

7
 VKC PVT LTD [Year]

INDUSTRY PROFILE:

HISTORY OF FOOTWEAR:

Spanish cave drawings from more than 15000 years ago show humans with
animal skins or furs wrapped around their feet. The body of a well preserved
“ice - man” nearly 5000years old wears leather foot stuffed with straw. Shoes,
in some form or another, have been around for a very long time. The evolution
of foot coverings, from the sandal to present-day athletic shoes that are marvels
of engineering, continues even today as we find new materials with which to
cover our feet.

We are, in fact still wearing sandals- the oldest crafted foot covering known to
us. Moccasins are still readily available in the form of the loafer. In fact, many
of the shoes we wear today can be traced back to another era. The Cuban heel
may have been named for the dance craze of the 1920s, but the shape can be
seen long before that time. Soles, which are one of the most recognizable
features of footwear in the 1970s and 1990s, were handed down to us from 16th
century choppiness. Then, high soles were a necessity to keep the feet off of the
dirty streets. Today they are worn strictly for fashion’s sake.

If one can deduce that basic shoe shapes have evolved only so much, it is
necessary to discover why this has happened. It is surely not due to a lack of
imagination- the colors and materials of shoes today demonstrate that. Looking
at shoes from different parts of the world, one can see undeniable similarities.
While the venetians were wearing the choppiness, the Japanese balanced on
high-soled wooden shoes called get. Though the shape is slightly different, the
idea remains the same. The venetians had no contacts with the Japanese, so it is
not a case of imitation. Even the mystical Chinese practice of foot binding has
been copied in our culture. Some European women and men of the past bound
their feet with tape and squashed them into too-tight shoes. In fact, a survey
from the early 1990s reported that 88%of American wear shoes that are too
small!

As one examines footwear history, both in the west and in other parts of the
world, the similarities are apparent. Though the shoemakers of the past never
would have thought to Analysis of financial statements at VKC Pvt Limited pair

8
 VKC PVT LTD [Year]

a sandal with a platform sole, our shoe fashions of today are, for the most part,
modernized adaptations of past styles.

9
 VKC PVT LTD [Year]

PERFORMANCE OF INDIAN FOOTWEAR INDUSTRY

The foot wear industry is a significant segment of the leather industry in India.
India ranks second among the footwear producing countries next to the China.

In 1999, the global import of footwear in terms of value was around US$43278
million a ccounting a share of 63.42% in the total global import of leather and
leather products out of this import of leather footwear alone accounted for
us$26379 million and non leather footwear US$16899million.

India’s exports of leather footwear touched US$331 million in 1999-2000,

recording an increase of 3.29% over the preceding year. India thus holds a share
of 1.25% in the global import of leather footwear. The major markets were the
UK, USA, France, Italy, Russia, etc. In 1999-2000, export of leather footwear
from India contributes 21% share of its total export of leather and its products.
Nearly 33 million pairs of various types of leather foot wear were exported
during the year. It includes dress shoes, casuals, sport shoes, etc.

INDIAN FOOTWEAR COMPONENTS INDUSTRY

The footwear component industry is a segment of leather industry in India. The

footwear components which are exported from India are leather shoe upper and
leather unit soles. The estimated annual production capacity of leather shoe
upper’s is 112 million pairs. The major production centers are Chennai, Ranipet,
Agra, Tamilnadu, etc.

The component industry has enormous opportunities for growth to cater to

increasing production of footwear of various type, both for export and domestic
market.

Nearly 75% of total export of footwear component is from the southern region
followedby northern region with a share of 13%.

Nearly 83% of the India’s export of footwear component is from the UK,
Germany, Italy, USA, France and Portugal.

10
 VKC PVT LTD [Year]

Micro and macro component of marketing environment and its

impact.

Different authors have classified the marketing environment differently. But

basically marketing environment can be classified in two categories which are
as follow:

 The Micro environment

 The Macro environment

The micro environment

The microenvironment can be separated into the internal environment and the
external environment. The internal environment consists of the firm’s own
management structure, the organization’s strategies and objectives, and the
departments within the company. The characteristics of the firm’s internal
environment affect its ability to serve its customers. The external environment
comprises suppliers, marketing intermediaries, customers, competitors and
publics. As well as obvious groups such as shareholders, publics can also
include local interest groups who may have concerns about the marketer’s
impact on the environment or on local employment.

The microenvironment consists of following factors.

1. Intermediaries.
2. Customers.

11
 VKC PVT LTD [Year]

3. Public.
4. Competitors.
5. Company.
6. Suppliers.

12
 VKC PVT LTD [Year]

The macro environment

Larger societal forces that affect the whole microenvironment are known as the
macro environment. These forces are of uncontrollable variables which the
company must take care of and to respond it quickly because the global forces
have huge impact on consumers and companies. The macro environment
consists of following major forces which affect the whole micro environment of
a company.

 Demographic.

 Economic.

 Natural.

 Technological.

 Political and legal.

 Cultural.

1. The demography.

The study of human populations in terms of size, density, location, age,

gender, race, occupation and other statistics comes under the
demographic environment. The demographic environment itself is
affected by changes in the mix of age groups in the population. If the
population becomes older, this will lead to rising demand for products
and services consumed by older people and a similar fall in demand for
products consumed by younger people.

13
 VKC PVT LTD [Year]

2. Economic.

The economic environment is important to marketers because it affects

the amount of money people have to spend on products and services. One
of the components of the economic environment is the distribution of
income. Economies around the world not only vary in their absolute or
total level of wealth but also in how their wealth is spread within the
population. For example, poor countries may be classified either as those
which have a highly unequal spread of wealth or those where it is more
evenly shared. The former group of countries may be markets for luxury
goods, despite the level of poverty. In contrast, the second type of country
may be more attractive to marketers of inexpensive goods for the mass
market.

3. Natural.

Natural resources needed as inputs by marketers or that are affected by

marketing activities. This is important to marketers insofar as it is the
source of many raw materials and fluctuation in supply can affect the
prices paid for purchases. There is increasing pressure from public
opinion as to where raw materials are sourced from, and their effect on
the natural environment.

4. Technological.

Technological developments offer marketers both opportunities and

threats. Although firms can offer customers a wider array of advanced
products, changes in technology also mean that there may be more than
one technical solution to a customer’s needs.

14
 VKC PVT LTD [Year]

Increased technological development accelerates the speed of

obsolescence. Marketers have to consider how their product may need to
be developed over time, if it is to remain competitive.

5. Culture.

People’s opinions and tastes are shaped by the society in which they live.
It should be noted that societies are not made up of homogeneous
populations. They contain sub-cultures, which are beliefs and values
shared by smaller groups of people. Such groups may arise out of a
common race, religion, social activity or hobby. Sub-cultures are
important to marketers insofar as they may have different consumption
habits from the rest of the population.

6. Political and legal..

Marketers are influenced by the regulatory environment. This has implications

for their obligations to customers and the wider public. Customers are
increasingly able to seek redress for faulty products, and those who live near
manufacturing plants are able to claim compensation for pollution. The political
environment around the world has recently favored the privatization of public
companies. Such companies have also been able to compete more freely in the
private sector. Political changes in Eastern Europe have also meant that these
markets are now open to marketers from around the world

15
VKC PVT LTD [Year]

16
 VKC PVT LTD [Year]

COMPANY PROFILE.

Name of the company : VKC GROUP OF COMPANY

Constitution : Small scale industry

Date of establishment : 1984

Sales head quarters : Calicut

Incorporation : 1984

Contacts phone no : 0495-2442225

Authorized capital : Rs.40 lakh

Land and building : 4.5 acres and 1.75 acres

Financial year turnover : Rs.700 million

History

The Group was established on 17 August 1984 with venturing into a Hawai
Sheet manufacturing unit. Later on Hawai straps were also inducted to the
production line and in 1986, VKC group launched the first product with its own

17
 VKC PVT LTD [Year]

brand name VKC Hawai in the market with an initial production of 600 pairs
per day. By 1989 the production increased to 5000 pairs a day and by 1996 it
was increased to 17000 pairs.

In 1987, the group initiated the floating of the first RPVC (Rigid Polyvinyl
Chloride) footwear manufacturing unit in the Kozhikode, Kerala. This product
also got very good acceptance in the market. This has paved the way for a rapid
change in the footwear industry itself. Within a few years the number of Rubber
and RPVC units grew to more than 80 numbers in this region.

In 1994 the group ventured the first unit in Kerala to manufacture footwear
from virgin PVC. This resulted in a drastic change and the multinational brands
confronted competitions from the local brands. In 1998 the group ventured into
the first Micro Cellular PVC footwear in Kerala with the help of imported plant
and machinery. "Quality at affordable price" made the VKC groups products
popular in the market day by day.

In 2001 the group introduced the first Air Injected PVC DIP footwear
manufacturing unit in the South India. In 2003 the group missioned the first
Injected EVA manufacturing unit in South –Central India. In 2006 the group
started backward integration to produce EVA compound for Injection and
initiated the first EVA compounding plant in the South –Central India.

In 2007, the group initiated the Manufacturing of PU DIP footwear at affordable

price for common man. The production capacity also shoot up to two lakhs of
PU footwear per day.

The company had achieved a prominent position in the footwear market of

India. The main markets which are being focused by the company are South &
South-Central part of India & Expanding to the rest part of India. Apart from
India, the Group have its market in more than 15 countries including GCC
Countries, Singapore & Malaysia.

“VKC group of companies are the leading footwear manufacture

especially in southern region of India. The group established on (August17)
1984 with a nominal capital and few employees. In 1984 the founder of the
group Mr. V.K.C. Mammed Koya started a Hawai Sheet manufacturing unit
with his two brothers. Later on Hawai straps were also inducted to the
production line and in 1986 VKC group launched the first product with its own
brand name in the market viz. VKC Hawai with an initial production of 600

18
 VKC PVT LTD [Year]

pairs per day. By 1989 the production increased to 5000 pairs a day and by 1996
it jumped to 17000 pairs.

In between the founder initiated the floating of the first RPVC footwear
manufacturing unit in the Malabar Area of Kerala state with few of his friends.
This product also got very good acceptance in the market. The success of the
first unit and the RPVC unit gave a signal to the business community and the
vast potential was seen by the various industrialists. This resulted in a rapid
change in the footwear industry itself. Within a few years the number of Rubber
and RPVC unit grew to more than 80 in this area. In 1994 the group ventured
the first unit in Kerala to manufacture footwear from virgin PVC. This resulted
in a big change and the multinational brands felt competitions from the local
brands. In 1998 the group started the first Micro Cellular PVC footwear in
Kerala with imported plant and machinery. “Quality at low price” made the
VKC groups products popular in the market day by day. It also expanded its
market to other southern states.

In 2001 the group started the first Air Injected PVC DIP footwear
manufacturing unit in the South India. In 2003 the group ventured the first
Injected EVA manufacturing unit in South – Central India. In 2006 the group
started backward integration to produce EVA compound or Injection and started
the first EVA compounding plant in the South – Central India. The unit went in
2007 the group started manufacturing of PU DIP footwear.

During this period new bloods with technical, commercial and practical
knowledge were inducted and now the group consists of 20 working Directors
and 60 share holders spread over 19 various units. And have annual group
turnover of Rs.700 million. More than 1000employees are working in these
units.

The company had achieved a prominent position in the footwear market of

India. The main markets, which are concentrated by the company, are Kerala,
Tamilnadu and Karnataka. The good quality and variety in models of VKC
products help the companies to face the market competition. The company has
been able to maintain the quality of the products by adopting foreign
technologies. The group is now looking for further avenues in the field of
footwear to stretch their hands.

19
 VKC PVT LTD [Year]

The Head Quarter of VKC group is in CALICUT .And the main plants of VKC
group of companies are situated in Kerala and Tamilnadu. The following are the
associate companies of VKC group.

VISSION AND MISSION

VISSION

We will make use of edge legal and business technologies and methodologies,
to assure that we will continue to deliver the highest quality of professional
services to our clients and we will always strive to incorporate new practice
areas and opportunity so that we can continue adapt to the growing and ever
changing need of our clients

MISSION

Our mission is to provide our clients with a network of innovative secretarial

and legal solution. Our entire organization endeavours to exceed the
expectations of our client in all aspects of services, by;

 Always adding maximum value to their business.

 Always responding promptly to our clients needs.
 Always managing our client’s matters in an effective, caring and
proactive manner.
 Always communicating regularly and clearly with our clients.
 And always looking to achieve end result desired by our clients.

20
 VKC PVT LTD [Year]
Product profile:

VKC Rubber industry pvt.ltd producing high quality plastic footwear from
100% virgin rubbers. The company’s VKC. Rubber industry pvt.ltd is
producing high quality plastic footwear from quality plastic footwear from
100% virgin micro cellular rubbers. The company’s manufacturing facilities
includes modern equipment and machineries imported from Taiwan, first of its
kind in south including rotary injection modeling machines for improved
product quality. The company has to face stiff competition as there is lots of
plastic footwear manufacturing in Kerala.

Area of operation:

Veekesy Rubber industry pvt ltd has operating the business in south India and it
has along tradition of maintaining the highest quality standards, right from the
selection of raw materials to processing and packaging of the end product

21
 VKC PVT LTD [Year]

Market shares

22
VKC PVT LTD [Year]

23
 VKC PVT LTD [Year]

Milestone achievement/awards

24
 VKC PVT LTD [Year]

Corporate social responsibility

VKC Group has constituted a Charitable organisation named "VKC Charitable
Foundation" and this Trust undertakes various activities which is directly
reaching the needed. A considerable share of profit of the VKC Group
Companies is contributed to this Charitable Trust for helping the economically
backward people.

VKC Charitable Foundation

The Foundation is rendering its services since 1995. Some of the social
activities initiated by the foundation are

 Running two charitable schools in Kozhikode.

 Providing Breakfast for over 1000 students in 4 schoolsKozhikode.
 Providing Infrastructure and amenities for schools and primary health
centres.
 Provided Mobile Mortuary for Kozhikode Medical College

In Jan 2014, The Group in association with Mathrubhumi has initiated to

organise a social event named "Mathrubhumi Vidya - VKC Junior Nanma" to
motivate the junior students to involve into the social activities and to inculcate
civic consciousness among the little ones.

From the Business view, the group is actively participating in the various trade
and business associations and also conducting various events for the promotion
of Footwear Industry in Kerala.

25
 VKC PVT LTD [Year]

SWOT ANALYSIS
Swot analysis is a strategic planning method used to evaluate the strength
,weekness , opportunities &threats involved in a project or in a business venture
and identifying the internal and external factors that are un favourable to
achieve that objective .

The companies swot analysis is as follows

STRENGTH
 Easy availability of raw materials and other input.
 Massive industrial support for technical services .
 Designing ,man power development and marketing .
 Management is very stable , that forms strong foundation of the
company.
 Employees are being provided with all necessary welfare facilities .
 Competitive advantage in cost of production .
 Wide distribution network
 Well-equipped quality control dept for inspecting the quality of
incoming of raw materials and final productions

WEEKNESS
 Lack of skilled human resources.
 Cost of production is high
 Not able to meet the market demand
 Less export
 Lack of proper utilisation of R&D

OPPORTUNITIES
 The company has the opportunity to expand its production unit due to
more demand for its product.
 The company has got better tools for better planning and decision
making.

26
 VKC PVT LTD [Year]

 The company can establish more branches across india

 At present it has good raw material resources to enhance production .
 Good export market should tap foreign market vigorously.

THREATS
 Competition from other leader like HUL
 Govt. Interference may reduce growth potential.
 Technology advancement at a faster rate
 To protect final interest of the company.

27
 VKC PVT LTD [Year]

COMPETITORS:-

The top competitors in vkc groups competitive set are

 PARAGON FOOTWEAR

IT is an Indian footwear company which was founded in the year 1975 In

kottayam, kerala. Established by 3 individuals, P.V.Abraham, K.U.Thomas and
K.U.Scaria, the company now emploies over 10000 people. Paragon
footwearsThe Group was established on 17 August 1984 with venturing into a
Hawai Sheet manufacturing unit. Later on Hawai straps were also inducted to
the production line and in 1986, VKC group launched the first product with its
own brand name VKC Hawai in the market with an initial production of 600
pairs per day. By 1989 the production increased to 5000 pairs a day and by 1996
it was increased to 17000 pairs.

In 1987, the group initiated the floating of the first RPVC (Rigid Polyvinyl
Chloride) footwear manufacturing unit in the Kozhikode, Kerala. This product
also got very good acceptance in the market. This has paved the way for a rapid
change in the footwear industry itself. Within a few years the number of Rubber
and RPVC units grew to more than 80 numbers in this region

 BATA

The T. & A. Baťa Shoe Company was founded on 24 August 1894 in

the Moravian town of Zlín, Austria-Hungary (today the Czech Republic)
by TomášBaťa (Czech: [ˈtomaːʃ ˈbaca]), his brother Antonín and his sister
Anna, whose family had been cobblers for generations. The company employed
10 full-time employees with a fixed work schedule and a regular weekly wage,
a rare find in its time.

In the summer of 1895, Tomáš was facing financial difficulties. To overcome

these setbacks, he decided to sew shoes from canvas instead of leather. This
type of shoe became very popular and helped the company grow to 50
employees. Four years later, Bata installed its first steam-driven machines,
beginning a period of rapid modernisation. In 1904, Tomáš read a newspaper
article about some machines being made in America. Therefore, he took three
workers and journeyed to Lynn, a shoemaking city outside Boston, in order to

28
 VKC PVT LTD [Year]

study and understand the American system of mass production. After six
months he returned to Zlin and he introduced mechanized production techniques
that allowed the Bata Shoe Company to become one of the first mass producers
of shoes in Europe. Its first mass product, the “Batovky,” was a leather and
textile shoe for working people that was notable for its simplicity, style, light
weight and affordable price. Its success helped fuel the company’s growth.
After Antonin's death in 1908, Tomáš brought two of his younger brothers, Jan
and Bohuš, into the business. Initial export sales and the first ever sales agencies
began in Germany in 1909, followed by the Balkans and the Middle East. Bata
shoes were considered to be excellent quality, and were available in more styles
than had ever been offered before. By 1912, Bata was employing 600+ full-time
workers, plus another several hundred who worked out of their homes in
neighbouring villages

 CROCS

Crocs was founded by Lyndon "Duke" Hanson, and George Boedecker, Jr. to
produce and distribute a foam clog design acquired from a company
called Foam Creations. The shoe was originally developed as a boating shoe.
The first model produced by Crocs, the Beach, was unveiled in 2002 at the Fort
LauderdaleBoat Show in Florida, and sold out the 200 pairs produced at that
time. It has since sold 300 million pairs of shoes.


RELAXO FOOTWEAR

Since its inception, the company has gone on to become one of the largest
producers of footwear in India with an estimated business value of 17 billion
last year. A brand synonymous with quality products and affordable prices,
Relaxo is adorning millions feet in more than 25 countries around the world.
The company boasts of having 8 start-of-art manufacturing units spread in
northern part of India with a production capacity of 6 lac pairs of footwear per
day, catering to varied needs of consumers worldwide. Relaxo brings a fine
combination of comfort, style, and workmanship under its popular brands i.e.
Flite, Bahamas, Sparx, Schoolmate, and Hawaii. The footwear products offered
by the brand signify extreme stylishness and come in varied alluring colours and
exquisite designs

29
VKC PVT LTD [Year]

30
VKC PVT LTD [Year]

31
VKC PVT LTD [Year]

32
 VKC PVT LTD [Year]

5 structure & functions of different departments

33
 VKC PVT LTD [Year]

Finance department
Finance is the science of fund management . the general area of
finance are business and public finance . finance is today recognized
as the life blood of the business . it also deals with how money is
spend and budgeted. They cannot imagine business without money. It
is the central point of all business activities ,regardless of the type of
the org , govt ,business,education ,health. Finance function is equally
important for profit and non profit organization.
The importance of finance need not be over emphasized. The
growth and expansation of the business is not possible without
sufficient funds.
The financial position of the “VKC FOOTWEAR PVT. LTD”.
Is good because of their well-equipped finance and administration
dept. Finance management is the process of planning, organizing,
direction & controlling the finance activity.
The two function of finance dept are finance and accounting
Functions of finance department

 Preparation and maintenance of accounts and record.

 Recording of bank transaction like cash withdrawal, maintain
detail of check payments etc.
 Maintenance of commercial account, income tax etc.
 Payment of company bills like telephone, electricity and
monthly returns of professionals tax, sales tax, and CST and
VAT.
 Preparation of budget.
 Fixed assets registration maintenance
 Salary preparation
 Allocation of bonus, PF etc

34
 VKC PVT LTD [Year]

Key financial activities

1. Financial analysis, planning and control
 Assessing the financial performance and conditions of
the firm.
 Forecasting and planning the financial structure.
2. Management of firms asset structure
 Managing the liquid resources
 Debt and dividend policy
 Determine the capital budget
 Negiotiating and developing relationship with various
suppliers

Records maintained
 Cash book
 Bank book
 Journal
 General ledger
 Asset ledger
 Purchase journal, sales day book, creditors ledger
 Sales register
Subsidiary register like TA advance, salary advance

35
 VKC PVT LTD [Year]

Financial department structure

36
 VKC PVT LTD [Year]

PRODUCTION DEPARTMENT

Since VKC is footwear manufacturing company the prime

importance is to production process. The company uses
Italian technology for the injection moulding process.
moulding process is the main process of manufacturing.
This process help the company deliver high quality
footwears with accurate size good finish. There is a
monthly target for the production manager which they
strive to achieve.
Every employees is expected to take responsibility
for managing quality issue in order to minimize waste and
maximize the quality. The production dept of VKC
polymers comprise of well experienced staff members.
The structure of production is as follows

37
 VKC PVT LTD [Year]

Functions of production departments

1. Purchase of raw material

The duty of the purchasing part of production dept is
to buy right quality raw material at economic price and
distribute is to various dept as and when required the
purchasing product is as follows

 Estimating the budget

 Receiving purchase requisition
 Estimating the quality to be brought
 Selecting suppliers
 Placing order
 Following up receiving and inspection of
material
 storage of raw materials
 producing finished goods
 packing finished goods

38
 VKC PVT LTD [Year]

Production process

39
VKC PVT LTD [Year]

40
 VKC PVT LTD [Year]

MARKETING DEPARTMENT
According to Philip Kotler marketing is defined as” human activity directed at
saatsifing the needs and wants theough exchange involve sellers , searching
buyers , satisfying their want and making relevant produt promoting and strong
transporting and functional area of business for the flow of the goods and
services from the producer to the consumer it helps to plan and develop
products on the basis of known consumer needs

After production the products are being sold in the market according the
orders taken by the nmarketing dept . the marketing dept studies the market and
the target consumer and decides the best way to reach their customers , and
works with the rest of the company to help determine the new product needs of
the market. The company do continue market research which helps them in
planning and executing the new marketing strategies for the future course of
action also helps the company to analyze the buyer habits, popularity of
products and effectiveness of the adv media . it also helps in collecting
information regarding marketing problems and opportunities

STRUCTURE OF MARKETING DEPARTMENT

41
 VKC PVT LTD [Year]

MAIN FUNCTIONS OF MARKETING MANAGERS

 Sales operation
 Inventory management
 Production forecasts
 Control of sales
 Evaluating the marketing pulse
 Tailoring promotion plans and activities
 Monitoring delivery performance of distributors

The MARKETING TECHNIQUES USED ARE:-

 Channels distribution
 Sales promotion
 Advertising
 Market research


Channel of distribution
It is the set of marketing intermediaries through which the goods flow from the
producer to the consumer

The company had provided the door delivery system to the wholesalers
for the distribution of the products through their own vehicles and through the
different transporters.

The company adopts a 2 level distribution system consisting of wholesale

dealers and retail dealers. The company satisfied with the existing arrangement

42
 VKC PVT LTD [Year]

Sales promotion
The sales promotion plays an important role for the VKC footwear
products sales promotion influences the customers for buying the products and
also helps to reduce competition , it popularizes the product so as to stimulate
demand

Sales promotion tools used are

1. Consumer promotion
 Coupons
 Demonstration
 Contest
 Price offer

2. Dealers promotion
 Sales contest
 Dealers gift
 Turnover allowances

3. Advertising and schemes

43
 VKC PVT LTD [Year]

HUMAN RESOURCE DEPARTMENT

FUNCTIONS OF HRD
 Man power planning

It involves the planning for the future and finding out how many employees will
be needed in the future by the business and what types of skills man power
planning should they possess.

 Job analysis and job description.

A job analysis is the process used to collect information about the duties,
responsibilities, necessary skills, outcomes, and work environment of a
particular job.

Job descriptions are written statements that describe the:

Duties, responsibilities , most important contribution and outcomes needed from

a position .

 Determining wages and salaries

HR dept is also involved in conducting market surveys and determining the

wages and salaries for different position in an organization. This decision may
be taken in consultation with top management and finance dept.

 Recruitment and selection

One of the most important jobs HR departments is to recruit the best people for
the organization. This is of crucial importance as the success of any
organization depends on the quality of its work force. Details regarding the
recruitment and selection procedure can be found here

 Performance appraisal

Ones the employees are recruited, the HR dept has to review their performance
on a regular basis through proper performance appraisals.

Performance appraisal is the process of obtaining , analyzing and

recording information about the relative worth of an employee. The focus of the

44
 VKC PVT LTD [Year]

performance appraisal is measuring and improving the actual performance of

the employee and also the future potential of the employees. it aims to measure
what an employee does

RECRUITMENT PROCESS

45
 VKC PVT LTD [Year]

Steps in selection process

The no of steps in the selection process and the sequence of steps vary
from organization to organization . the different types of steps in selection
process are as follows

 Scrutiny of application
 Preliminary interview
 Blank application form
 Interview
 Checking reference
 Medical examination
 Final selection
 Tests
 Trade test
 performance test
 psychological test

Working time
Gents:

Office staff: 9am-6pm

Factory workers: 8am-5pm

Women:

Office staff: 9am-5.30pm

 Factory workers: 8am-4.30pm

Safety measures: The measures used by the company to protect the worker from
accidents are

 Gloves
 Goggles
 Apparent shoes
 Mask

46
 VKC PVT LTD [Year]

FINDINGS
Vkc group of companies is the leading company of footwears manufacturing
especially in southern region of india .it was established on 17/08/1984.VKC
POLYMERS PVT LTD is registered as pvt ltd and is associate concern of very
renowned VKC stile brand footwear. This study mainly concerned with
understanding the functioning of different dept and the entire working of the
firm from the analysis the following findings were drawn:

 Good co-ordination among various dept .

 Policies , strategies and redressalsare satisfactory and transparent
 Due to efficient planning company is always running in profit.
 Company has good welfare scheme for the employees
 The company can provide good quality footwear in moderate price
 Better service to wholesalers
 The companies success due to the implementation of Italian technology.
 They having very good CVSR activity.

47
 VKC PVT LTD [Year]

SUGGESTIONS

 The company should reduce Rexene waste by efficient designing of

footwears.
 They should be a change in the model of footwears.
 Innovative advertisement are needed to stand and still in the market.
 VKC shoes are not a good market leader. So taking a new marketing
strategies for shoe section.
 The VKC FOOTWEAR should be adopting to direct marketing and E-
business, it will be making more profit and wide market.
 Company now producing limited number of design, it should come up
with more innovative design to attract more consumer and to survive the
competition.

48
 VKC PVT LTD [Year]

Conclusion

The privileged opportunity of doing one week organisation study provided to

the highly beneficial in the management point of view, it really gives a practical
knowledge about the nature of business topic related to the company like
functioning structure, promotional activities, working environment etc. The
experience had effect in increasing the skills of data collection, analysis,
organising.

Quality product, economical price, attractive style etc of VKC footwear

provide better market position of this company. The experience and expertise of
26yrs better lead to the company to be the market leader in all its market. The
brand name VKC footwear is more and more applicable in the mind of people
in all levels of society. VKC POLYMER PVT LTD is growing company with a
let of future anticipation.

49
 VKC PVT LTD [Year]

Bibliography

 http://vkcgroup.com/
 www.google.com
 http://wikipedia.org/

50